00:10Kazakhstan is seeking to move beyond exporting raw commodities.
00:13Exports of processed goods grew nearly 18% in the first half of the year.
00:18Crude oil, however, still dominates the country's shipments.
00:21With trade turnover reaching nearly 62 billion euro,
00:24Kazakhstan's trade and investment agencies say
00:27this momentum is opening up opportunities to expand local production.
00:34Welcome to East-West Connect.
00:35We highlight business and investment opportunities in Kazakhstan
00:38and across Central Asia, connecting the region with Europe and beyond.
00:43China remained Kazakhstan's largest trading partner in the first half of the year,
00:48followed by Russia with Italy in third place,
00:51followed by Turkey, France, Uzbekistan, the Netherlands, Germany,
00:54the United States and South Korea.
00:57Imports topped 27 billion euro, up over 5% driven by demand for natural gas,
01:04power generation equipment, other railway locomotives, gold, uranium, petroleum products and machinery.
01:10The government is taking steps to make Kazakhstan more attractive to investors.
01:15Over the past four years, Kazakhstan has signed 62 investment agreements,
01:20worth around 32 billion euro.
01:22These can provide up to 25 years of legislative stability
01:25for projects worth more than around 52 million euro.
01:29In 2025, Kazakhstan signed a further 173 investment contracts,
01:34worth around 2.6 billion euro.
01:36Qualifying projects may benefit from tax incentives,
01:39exemptions from import customs duties,
01:41on equipment and components,
01:43and in-kind state grants.
01:45To discuss the biggest investment opportunities created by this growing domestic demand,
01:50we're joined by Nurlan Kulbatyrov,
01:53Deputy General Director of Kastrade.
01:57Mr. Kulbatyrov, welcome.
02:00Kazakhstan's exports are growing faster than imports,
02:03with foreign trade reaching nearly 62 billion euro.
02:05What does this tell us about the next stage of Kazakhstan's economic development?
02:09Mr. Kulbatyrov, you correctly mentioned,
02:10that the growth of the market always is good,
02:12if it's very important, when it's a growth of export.
02:15And I want to mention,
02:16that it is the result of the fact that
02:19that in the first half of the year
02:20our growth of economic development was 4.1%,
02:23and the economy of environmental growth was the main driver of the economy.
02:28And the growth of the economy was almost 10% of the growth of the economy.
02:31And as you know,
02:32when we look at the very big concern on the news,
02:34and we see that if we can't be able to do it,
02:40We also see a good dynamic growth of these products.
02:45I think that this is a good tendency for the growth of the economy and in general for the trade.
02:49In general, we could be able to build import on three blocks.
02:58It's the commercial products, the investment products, and the consumer products.
03:04The part where we import products, it may be for the production of the country.
03:10I would like to point out that the potential for the economy is the industrial sector.
03:16It's the farming industry and the production of the agro-promotion.
03:21These are three main areas.
03:24We can also point out the industrial sector.
03:27In this regard, there is a lot of potential for investors to localize these products.
03:35We see changes in the structure of Kazakhstan's imports and exports.
03:42What are the biggest shifts and what's driving them?
03:44When we talk about moving, it's, in the first of all, not only the growth of the economy, but also
03:51the growth of the economy.
03:51It's also the growth of the geography.
03:53And we see very good indicators on the new market.
03:58Also, I want to point out that very good growth of Turkey.
04:01In two cases, Kazakhstan's products were raised.
04:03In France, in Uzbekistan.
04:05And I think that in Kazakhstan's products, other countries are more interested in other countries.
04:13It's very interesting.
04:14Mr. Kubatorov, thank you.
04:17The opportunity goes beyond the domestic market.
04:20Kazakhstan is also looking to expand its export base.
04:23Shipments have reached around 35 billion euro in the first half of the year, up 8.6% year-on
04:30-year.
04:31Crude oil remained Kazakhstan's largest export despite lower shipments than a year earlier,
04:36followed by copper and copper products, uranium, ferro-alloys, and wheat.
04:40Energy and metals continue to dominate Kazakhstan's export basket, but non-resource exports are gradually gaining ground.
04:48Animal feed exports surged nearly 80%, while sunflower oil exports increased by 57%.
04:55Kazakhstan is already a major global supplier of sunflower oil and is among the top three suppliers of sunflower meal
05:02to the European Union.
05:03So what's driving this growth in Kazakhstan's oil seed exports, and where are the next opportunities for investors?
05:09Joining us now is Yudhikar Ibrahimov, Chairman of the National Oil Seed Processors Association of Kazakhstan.
05:17Mr. Ibrahimov, welcome.
05:19So, Kazakhstan aims to increase exports of fats and oils to around 1.3 billion euro by 2028, around 60
05:26% above current levels.
05:29What's behind this rapid growth?
05:32We are in the results of the economy, therefore, including massive transformation of the industry,
05:36as a change of exports into the industry,
05:40which is also an expansion of the commercial einspire consumer oil,
05:42which does the rights of the government and gives further value to investing in the economy.
05:47If we look at the results of 2025,
05:49the value of our wealth was increased in 4 times,
05:53to 962 million dollars in the US.
05:55And, therefore, this is not the limit,
05:58which we are looking at.
06:00And, therefore, we have set the task
06:02to bring this result in 2-3 years
06:05to 1,5 million dollars in the US.
06:06That is, it is really possible from Kazakhstan.
06:10What competitive advantages does the country have
06:13in oil seed processing?
06:15The basis of this, of course,
06:17is the oil base,
06:18which we have in today's day,
06:21the geographic position,
06:22the system of the development of export and export
06:26and the export market.
06:28I want to stop on the oil base,
06:31because this is the basis,
06:33and Kazakhstan has the most important
06:38in Central Asia.
06:40And, therefore,
06:42there are also environmental conditions,
06:44which allow us to grow in the culture.
06:46And, therefore, we have, let's say,
06:48we have, let's say,
06:50an accelerated diversification,
06:51and the transition to the oil culture,
06:54like, for the sun,
06:55the growth of our country has been
06:56in almost 2,3 times in the last 5 years.
07:00And this is not the limit.
07:01We have the opportunity to increase it
07:02over 4 million dollars in the Republic.
07:05Where in the value chain do you see the greatest opportunities
07:08for international investors?
07:09For international investors,
07:11of course,
07:12it is important,
07:14if they want to invest in Kazakhstan,
07:16then in the direction of logistics.
07:18Why is this important?
07:19Because, one thing is when we produce our products,
07:22another thing is when we produce our products,
07:25when we produce it in export directions.
07:26And in this case, we see the need of the need of the logistic hubs,
07:32which are built in the corresponding infrastructure,
07:35which are created in the corresponding infrastructure,
07:36which is created in the export of our products,
07:39with container-in-house transports.
07:41Then, this will allow the Kazakhstan-carous production
07:46to get to other new markets.
07:48is with them. Mr. Brahimov, thank you so much for your time. Thank you.
07:54That's all for now. See you in the next episode of EastWest Connect.
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